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Consider the following simplified version of the television game show Let's Make a Deal. There is a grand prize behind one of three curtains; the other two curtains are empty. As a contestant, you get to choose a curtain at random. Let's say you choose curtain 3. Before revealing what's behind the curtain, the game show host always offers to show you what one of the other curtains contains. She shows you that curtain 2 is empty; in fact, she always shows you an empty curtain. (You know that's how the game works; so do the audience and everybody else.) Now you must decide: Do you stick with your original choice, curtain 3, or switch to curtain 1? Which action gives you the better chance of finding the grand prize?
The following equation represents the weekly demand that a local theater faces. Qd = 2000 - 25 P + 2 A, where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week.
Assume the marginal savings from emissions for an industry are given by MS
Hundreds of millions of people bid on eBay auctions to purchase goods from all over the world. Despite being carried out on line, in spirit these auctions are similar to those that have been conducted for centuries. Is an auction a game? Why or why n..
Joe quits his computer-programming job
Suppose that the government chooses conscription. That is, the government forces the representative consumer to supply a units of time to the government as military service C with a lump-sum tax. Use a diagram to show the effects of conscription o..
What is human capital, and how is it different from strictly the quantity of workers available for work? Name three ways to increase a nation's human capital. Is an increase in the size of the labor force also an increase in the human capital? E..
An investment opportunity will pay $10 with a 20% probability, $20 with a 40% probability, $30 with a 30% probability, and $40 with a 10% probability. what is the standard deviation of the investment?
a. explain the concept of the multiplier and explain the role of the marginal propensity to consume in determining the
A country with fixed quantities of resources is able to make any of the following combinations of bread and ovens.
examine a perfectly competitive firm that you have recently purchased a product from focusing specifically on how it
The San Francisco Giants want to boost revenues from ticket sales next season. You are hired as an economic consultant and asked to advise the Giants whether to raise or lower ticket prices next year.
A manufacturing company purchased electrical services for the next 5 years to be paid for with $70,000 now. The service after 5 years will be $15,000 per year beginning with the sixth year. After 2 years service the company, having surplus profits, r..
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